Which of the Following Is Likely to Happen If People

question 115

Multiple Choice

Which of the following is likely to happen if people suddenly become more willing to lend money?

• A)An increase in demand for loanable funds will increase the interest rate.
• B)An increase in the supply of loanable funds will increase the interest rate.
• C)An increase in the supply of loanable funds will decrease the interest rate.
• D)An increase in demand for loanable funds will decrease the interest rate.
• E)A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest.

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Definitions:

People's Bank

A generic term for a financial institution, often state-owned, that serves the financial needs of its citizens or specific sectors of the economy.

ATM System

An Automated Teller Machine (ATM) system refers to an electronic banking outlet that allows customers to complete financial transactions without the need for a branch representative or teller.

Auto Theft

The criminal act of stealing or unlawfully taking possession of someone else's motor vehicle.

Self-Incrimination

Giving testimony in a trial or other legal proceeding that could expose the person testifying to criminal prosecution.